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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: investorgal who wrote (10178)	4/7/1998 12:13:00 AM
From: MileHigh	Read Replies (1) \| Respond to of 14631

Thanks, I would love your opinion on the 10K, I will check it out as well. What is your take on this qtr and the stock price leading up to the release? MileHigh

To: investorgal who wrote (10178)	4/7/1998 2:35:00 AM
From: Marq Spencer	Read Replies (2) \| Respond to of 14631

A couple of interesting points from the 10K: 1. As expected, the restructuring charge of 100+ million is still not completely spent - $26.6MM remains. This is expected to be spent by the end of Q2 (per the 10K). This means that by taken a larger than needed charge during the Q2/Q3 announcements, they're showing artificially lower operating costs in subsequent quarters. Therefore, I would expect that Q1 operating costs will be artificially lower by about $15MM and Q2 by about $12MM. This will have a positive impact on Q1 of about 0.09/sh and on Q2 of about 0.07/sh - should make the numbers look good - watch out for Q3 though. 2. This puppy has massive negative cash flow ($148MM last year). It will be interesting to see the 10Q for Q1 to see how that is going - it'll give a much better picture of the health rather than reported earnings. As an aside, this is the most CYA 10K that I've read in a long time. - Brian